Further decline in gold and silver prices across markets

Price of gold per tola falls by Rs25,500

KARACHI:

Gold and silver prices recorded a further decline in international and domestic markets on Saturday, reflecting a sharp downturn in bullion rates.

In the international bullion market, gold prices fell by $255 per ounce to $4,895.

The decline was mirrored in the local market, where the price of gold per tola dropped by Rs25,500 to Rs511,862. The price of gold per 10 grams also fell by Rs21,862 to settle at Rs438,839.

Silver prices also moved lower, with the per tola rate declining by Rs2,063 to Rs9,006, while the price of 10 grams of silver fell by Rs1,768 to Rs7,721.

In the global market, gold has entered a new zone over the past two days due to widespread profit-taking. In the international bullion market, when it became certain that the US would not raise interest rates, gold prices began to rise from March 2024.

This upward trend continued through 2025, driven by tensions between the US President and the Federal Reserve Chair, the US occupation of Venezuela’s oil reserves, and geopolitical tensions with Greenland and Iran, which contributed to a decline in the dollar’s value.

During this period, central banks worldwide purchased nearly 1,700 tonnes of gold over the past two years. China also increased its net gold reserves by selling dollar bonds and treasury bills.

As a result, over the past two years, the price of gold per ounce rose by a substantial $3,500. In the local bullion market, the price of gold per tola was Rs227,800 in March 2024, and by January 28, 2025, it had surged to a record high of Rs572,862.

Experts believe that US conflicts, rising geopolitical tensions, and tariff threats have not only increased the importance of precious metals but also created unexpectedly strong upward trends in commodity and crude oil prices.

In this context, rumours are circulating that the global financial system is facing complexities. After a two-year interval, the past two days have seen significant declines in gold and silver prices in the international bullion market.

Meanwhile, the Union Bank of Switzerland has forecast that gold prices per ounce could reach a new record of $6,200 by mid-2026.

Read: Gold crashes by over Rs35,000 per tola

On Friday, Pakistan suffered a bloodbath as gold prices dropped over Rs35,000, mirroring a steep correction in international markets where gold, silver and copper tumbled after touching record highs earlier in the week.

The downturn was driven by panic profit-taking as investors rushed to lock in gains amid fading expectations of aggressive US interest rate cuts and a strengthening US dollar.

In the local market, the price of gold per tola plunged by Rs35,500 to settle at Rs537,362, while 10-grams of gold dropped by Rs30,435 to Rs460,701, according to rates released by the All-Pakistan Gems and Jewellers Sarafa Association(APGJSA).

The sharp fall marked a dramatic reversal from Thursday, when gold surged to Rs572,862 per tola after a massive single-day gain of Rs21,200.

Silver also came under heavy pressure, with prices declining by Rs1,106 to Rs11,069 per tola, reflecting the broader sell-off across precious metals.